Pfizer (NYSE: PFE) has been identified by InvestorsObserver analysts as being well-positioned for a new covered call today. Buying the stock for $25.31 while selling the March $26.00 call will produce a new covered call with a break-even point around $24.70. At that price, this position has a target return of 5.3 %. This trade will have roughly 2.4 % downside protection, while still aiming for a 5.3 % return in 142 days. It will lock in that return as long as Pfizer is above $26.00 on 3/16/2013. For comparison purposes only, this PFE covered call aims for an annualized return rate of 13.5 %.

LinkedIn (NYSE: LNKD) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $107.55 while simultaneously selling the December $105.00 call will result in a new position with a target return of 7.2 %. Based on recent prices, this position will cost about $97.95, which is also the trade’s breakeven point. At that level, this covered call has 8.9 % downside protection, while still providing a 7.2 % return in 58 days as long as LNKD is above $105.00 on 12/22/2012. For comparison purposes only, this LinkedIn covered call aims for an annualized return rate of 45.2 %.

SAP AG (NYSE: SAP) has been selected by InvestorsObserver analysts as a stock that is an ideal candidate for a new covered call today. Buying the stock for $71.21 while simultaneously selling the March $70.00 call will result in a new position with a target return of 5.9 %. Based on recent prices, this position will cost about $66.11, which is also the trade’s breakeven point. At that level, this covered call has 7.2 % downside protection, while still providing a 5.9 % return in 142 days as long as SAP is above $70.00 on 3/16/2013. For comparison purposes only, this SAP AG covered call aims for an annualized return rate of 15.1 %.

Fortune Brands Home & Security (NYSE: FBHS) has been chosen by InvestorsObserver analysts as a candidate for a new covered call today. Selling the March $30.00 call while at the same time buying FBHS stock for $29.20 will produce a new covered call with a target return of 10.1 %. Based on recent data, this trade will cost about $27.25, which is also the covered call’s breakeven point. At that price, this covered call has 6.7 % downside protection, while seeking an assigned return of 10.1 % return in 142 days. If FBHS is higher than $30.00 on 3/16/2013, we are assured that simple return. For comparison purposes only, that equates to an annualized return rate of 25.9 %.

Toll Brothers (NYSE: TOL) has been selected by InvestorsObserver analysts as a stock that is a strong candidate for a new covered call today. Selling the December $35.00 call while simultaneously buying TOL stock for $35.25 will result in a new position with a break-even point around $33.10. At that price, this position has a target return of 5.7 %. This trade has 6.1 % downside protection, while still providing a 5.7 % return in 58 days as long as TOL is above $35.00 on 12/22/2012. For comparison purposes only, this Toll Brothers covered call targets an annualized return rate of 36.1 %.

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